High Exchange Rate Cripples Nigeria Air Cargo Business

Findings have revealed that the high exchange rate of the naira to foreign currencies has grounded air cargo business in Nigeria.

It was gathered that clearing agents and aviation handling companies last experienced peak in their business at the Murtala Muhammed International Airport, Lagos,  in December 2014.

The sub-sector has lost projected N5 billion in business capacity, turnover and profits since March 2015, as the high exchange rate has crippled importation of goods into the country.

President, Association of Foreign Airlines Representatives in Nigeria (AFRAN), Kingsley Nwokomaon Wednesday, October 7, told ThisDay that the situation has become very bad as most businessmen have been discouraged from bring in goods into Nigeria.

According to Nwokoma, importers do not have access to the US dollars due to the Central Bank of Nigeria new policy on foreign exchange. Again, exchange rate of Naira to dollar is high, which means that goods imported are sold at higher prices at a time the purchasing power of average Nigerian is very low. He said even when the goods are imported, sales turnover is very low.

“The situation is very, very bad now because most important importers are no more importing, so they are no more bringing in cargo.”

“Most of the airlines that are into cargo import are threatening to stop operating into Nigeria because it is not possible for a 100-ton aircraft to be bringing 10-ton cargo. No matter the quantity of the cargo the airline must pay the same charges to the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA) and it will also pay for fuel. So it is not profitable bringing cargo into the country now,” Nwokoma said.

Nwokoma however expressed the hope that the situation may return back to normal after ministerial appointments.

About the Author

By 9jatravel / Administrator, bbp_keymaster

Follow 9jatravel
on Oct 09, 2015

No Comments

Leave a Reply


SHARE THIS INFO Life is a journey, we make it smooth

Close this popup

Check out our Packages or Book for the latest package

Do You want to travel by Air?

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeCheck Our Feed